NEW DELHI: India has lost about 10 per cent share of the global BPO market in the last five years to destinations like China, the Philippines and Brazil, raising concerns for the $20-billion Indian BPO industry.

The pre-budget Economic Survey 2012-13, which was tabled in Parliament, said India faces stiff competition from several emerging countries in the BPO sector.

It called for information campaigns by the industry to dispel the myths and fears about outsourcing in the developed economies.

Countries like Malaysia, China and the Philippines in Asia; Egypt and Morocco in North Africa; Brazil, Mexico, Chile and Columbia in Latin America; and Poland and Ireland in Europe are emerging as attractive destinations for voice contracts, posing a significant threat to Indian firms, it said.

"According to Nasscom, in the last five years, India has lost about 10 per cent market share to the rest of the world in the world BPO space, most of which is in the voice contract segment," it said.

According to industry body Nasscom, in FY13, IT services would account for USD 50 billion, while Business Process Management (BPM or BPO) and Engineering services would contribute USD 20 billion and USD 10 billion, respectively.

In terms of competition, though China faces challenges like language proficiency, it is making large investments in the mission mode to increase English proficiency.

The Philippines, which is the second largest destination for outsourcing, is also a serious competitor having developed both the hardware and software segments of IT.

Outsourcing has become a national issue in many developed countries like the US and the UK, who are supporting the local BPO industry through various means.

菲律宾是第二大外包目的国，也是一个强有力的竞争对手，在IT硬件和软件领域都有所发展。

外包在美国和英国等许多发达国家成为了全国性问题，这些国家通过各种方式支持本国的BPO产业。

"In such a situation, the Indian BPO industry needs to gear up to address the challenges. Information campaigns to dispel the myths and fears about outsourcing needs to be undertaken by the industry in the developed economies," it said.

In the overall IT and IT-enabled services space, new competitors like China, Israel and the Philippines have emerged in recent years.

Between 2005 and 2011, the annual average growth of IT-ITeS services was 69 per cent in the Philippines, 28 per cent in Sri Lanka, 59 per cent in Ukraine, 27 per cent in the Russian Federation, 37 per cent in Argentina and 35 per cent in Costa Rica.

paul (blr)it should be seen as a wake up call for indian IT industry and indian IT leaders!!! govt has not anyway bothered about the rise or fall of the IT industry, but its the million workforce who are going to be impacted.... hope soon some solid corrective measures be taken in this regard!!!

Rohit (wirtland)it is a bad news for India but it can be used as learning lesson and India can invest in Mnafacturing sector which will add to increase our GDP much higher than IT could do. But I know I am asking to mch from our hard working indian govt. who is always srrounded by scams.Agree (2)Disagree (0)Recommend (1)

Sunil (Baroda)In my view governement / BPO companies need to seat together to brainstronm the bottlenecks in the BPO insustries , there are many issues like infracture , trained manpower , taxestion policies etc which needs to be resolved . BPO companies needs to go to the B- C grade cities to reduce the cost . Gov. needs to improove the infracture like power, public transportation, law and order , water , education etc. so that there is complete social change in rural area.

pavan (Hyderabad)BPO business always need to be competitive ...and to be competitive you need to run it from cities like Hyderabad and Mysore ..... but our BPO run in Bangalore ..Mumbai and Delhi ...which are very costly cities to do business. and training is very imp which we lack from othersAgree (4)Disagree (4)Recommend (2)

Mr.Blunt (Bangalore)In my experience, the South Africans are way superior to the Indians... they are able to relate better... through their education and training.... to the west, are proactive, and above all... give a straight answer to a straight question. And they're cheaper. I have had situations where I have gone round in circles for 1 hour with Indian BPO staff, without resolving the issue at hand. Given the choice I would prefer the South Africans, East Europeans and Brazilians any day.Agree (2)Disagree (4)Recommend (1)

Deepak (Pune) replies to Mr.BluntSouth Africa resources will be more expensive than indians.Agree (4)Disagree (2)Recommend (0)

南非人的人力成本比印度人更昂贵。

binal (Mumbai)many Indian families are actually dependent on the outsourcing business...we really need to take care of this business.......Agree (3)Disagree (0)Recommend (1)

许多印度家庭靠外包业务吃饭，我们真的要打理好这个业务......

Suraj (India)BPO's cannot afford to be complacent. This should be a wake-up call for this segment. Off late we have been hearing too much complains from the Companies who have outsourced their work to India on data theft and misuse. This is a dangerous trend and if not checked immediately will give the entire industry a bad name.Agree (4)Disagree (0)Recommend (2)

Ivan Bigger (Moscow)This is good news...atleast now Indian BPOs like Infy and TCS should start building a comprehensive product portfolio and move away from services...Agree (2)Disagree (0)Recommend (0)

这是好消息，至少infosys和TCS等印度BPO公司会抛弃服务外包，转而开始构建一个全面的产品组合......

bind rk (us)Need to find out the cause where and why we are loosing the shares.Agree (0)Disagree (1)Recommend (0)

必须找到我们丢失份额的领域和原因。

COLRANBIRLAMBA lamba (PTA)WE MUST WORK HARD

我们必须努力工作。

Varun Singh (India)This is certainly not a good sign for India,as BPO sector provides a lot of employment . And also a wake up call that same thing can happen to the software sector ,As China also has a large population .

这对印度肯定不是好迹象，BPO业可提供了大量的就业。此外，还应该能敲响一个警钟，即软件业也可能出现一些问题，因为中国也有庞大的人口。

Jag Mohan (Delhi)We are losing the share because being not the competitive enough grab the business.Agree (1)Disagree (1)Recommend (0)

我们在失去份额，因为不具有足够的竞争力，揽不到业务。

COLRANBIRLAMBA lamba (PTA)INDIANS PULL UP UR SOCKS

印度人，振作起来。

The Bharatiya (Bangalore)China and Brazil have low cost solution than India. India will loose more in coming years.Agree (1)Disagree (1)Recommend (0)

中国和巴西有比印度成本更低的方案，印度在未来几年会失去更多份额。

Prakash Alkutkar (Pune)Biggest cost in BPO is manpower, and we should have great advantage there. Compare our per capita income of $3700 a year with that of Phillipines ($4100) Sri Lanka($5700) Ukrain, Russia and Costa Rica (all over $10000 ), and we are still loosing business to them? We need to increase competitiveness, make setting up business easier and in general shed the complacency & work harder!Agree (1)Disagree (0)Recommend (0)

Varun Arya (Indore)With costs rising in traditional IT centres, it was time for the companies to move to tier 2 and 3 cities. But they want everything on a platter, never moved there coz not all state govts building SEZs, they wanted to save on tax so badly that they lost their competitive edge Clearly a case of lack of vision, these companies were just lucky, everything fell in place because the Westerners wanted to reduce cost. You can even look at the ITes companies, most of them still pitching of cost arbitrage, which won't always be there, time to innovate.